Department store Beales has put itself up for sale amid “brutal” trading conditions, it has been revealed.
It comes shortly after the retailer completed a Management Buy-Out (MBO) in October last year, reverting the group back to private ownership.
Despite launching a restructuring strategy in 2019, which is showing “significant sales improvements”, the retailer has confirmed it is now looking for a new buyer.
The group reported a £3 million loss in its latest trading statement, around £1 million of which was related to costs incurred during the MBO.
It is believed that the Bournemouth-based store drafted in business advisors earlier this week to lead a strategic review and consider possible refinancing options. The retailer had considered closing underperforming stores and renegotiating lease terms, before finally settling on a “formal sale process”.
Commenting on the announcement, Beales said it “continues to acclimatise to the ever-changing landscape and challenges of the retail market”.
“Beale Limited announces that it is currently assessing a number of strategic and financing options that are available to the Company. These options include, but are not limited to, assessing a potential sale of the Company and its subsidiaries, including J E Beale plc,” it said.
“The Company has resolved to take advantage of the dispensations available from certain provisions of the Takeover Code to facilitate discussions with interested parties by commencing a “formal sale process” (as described in the Code).”
According to This is Money, the retailer has yet to receive an offer.